Woodward (WWD) DIvidends Date & History

Key Takeaways

• Woodward, Inc. (WWD) offers a modest quarterly dividend of $0.32 per share, equating to an annualized $1.28 and a yield of 0.35%.
• Recent 14% dividend increase signals commitment to shareholder returns amid aerospace demand.
• Payout ratio of 14.11% indicates strong sustainability, well-covered by earnings of $7.95 per share (trailing).
• Robust free cash flow of $252.78 million (TTM) and operating cash flow of $551.21 million support ongoing payments.
• Dividend yield trails Aerospace & Defense industry peers and sector average of 1.51%.
• Low debt-to-equity ratio of 36.26% and current ratio of 2.05 enhance financial stability.

Dividend Overview

Woodward, Inc. (WWD), a designer and manufacturer of control solutions for aerospace and industrial markets, maintains a modest dividend profile. The company pays dividends quarterly, with the most recent declaration at $0.32 per share, up 14% from $0.28 previously, payable on March 5, 2026, to shareholders of record on February 19, 2026. This annualizes to $1.28 per share, yielding approximately 0.35% at a share price around $365. Woodward is not classified as a high-yield stock but rather one with a conservative payout emphasizing reinvestment in growth sectors like aerospace. The forward yield remains low at 0.35%, with a trailing yield of 0.30% and a five-year average of 0.58%.

Dividend History and Growth

Woodward has paid dividends consistently for nearly three decades, transitioning to quarterly payments over time. The dividend has shown steady growth, with annual payouts rising from $0.50 in 2017 to $0.65 in 2019, before a slight cut to $0.524 in 2020 amid pandemic pressures, followed by recovery and acceleration. Recent momentum includes hikes from $0.25 to $0.28 and now $0.32 quarterly, reflecting a 14% year-over-year increase announced in early 2026. This strategy balances returns with capital for expansion in high-demand areas, though it lacks a formal dividend aristocrat streak.

Dividend Sustainability and Payout Ratio

Woodward's dividend appears highly sustainable, underpinned by a low payout ratio of 14.11%, meaning only a fraction of trailing EPS of $7.95 is distributed. Free cash flow stands at $252.78 million TTM, with operating cash flow at $551.21 million, easily covering the approximate $76 million annual dividend obligation. A manageable debt-to-equity ratio of 36.26% and current ratio of 2.05 signal solid liquidity and low leverage risks. These metrics, combined with earnings growth in aerospace, support continued payments and potential future raises without straining finances.

Dividend Compared to Industry Peers

In the Aerospace & Defense industry within Industrials, Woodward's 0.35% yield lags the sector average of 1.51% and peers. For instance, larger defense contractors like RTX and LMT offer yields above 2%, while peers such as HEI pay no dividend and CW yields around 0.5%. Woodward prioritizes growth over high yields, positioning its payout as conservative relative to industry norms focused on mature defense spending.

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Is This Stock Attractive for Dividend Investors?

Woodward, Inc. (WWD) may appeal to dividend growth investors tolerant of low current yields in exchange for expansion potential. Its modest 0.35% yield suits those prioritizing total returns from capital appreciation in aerospace over immediate income, given strong FCF and earnings coverage. Conservative long-term holders could value the low 14% payout ratio, recent hikes, and balance sheet strength amid industry tailwinds like rising defense budgets and commercial aviation recovery. High-yield seekers may find it lacking compared to peers, but growth-oriented income investors might see room for yield expansion as earnings compound. Overall, it fits portfolios blending modest dividends with sector growth, though volatility in aerospace warrants caution.

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